Qatari Diar Provides Full Equity Financing for CityCenterDC

Doha, April 04 (QNA) - The start of construction on the CityCenterDC development by Hines Archstone was formally announced Monday at a groundbreaking ceremony on the downtown Washington, DC site.
In addition, it was announced that 100 percent equity financing has been secured for the $700 million project. The anchor investor is Qatari Diar Real Estate Investment Company, the real estate investment arm of the Qatari Investment Authority. The financing was put in place by Barwa Bank's investment banking subsidiary The First Investor (TFI). TFI will co-invest in and manage the dedicated TFI U.S. Real Estate Fund.
The project is believed to be the largest downtown development currently underway in any U.S. city.
A joint venture between Clark Construction Group and Smoot Construction of Washington, DC has been engaged as general contractor. Construction commenced on March 23 and is expected to reach substantial completion by the fourth quarter of 2013, a statement issued by the two parties said.
Formerly the site of the District's old convention center, CityCenterDC is a 10-acre, mixed-use development, located in downtown Washington on a 4.5-block parcel bounded by New York Avenue, 9th, H and 11th Streets, NW.
The first phase of the project is a pedestrian-friendly neighborhood with more than 185,000 square feet of retail situated at the base of six buildings that encompass 458 rental apartment units and 216 condominium units; and 520,000 square feet of office space.
The project also includes 1,555 below-grade parking spaces; a new street grid reinstated throughout the site, and nearly an acre of public open spaces. A second phase of the project is planned to include a 350-room upscale hotel, along with 110,000 additional square feet of retail.
CityCenterDC's retail component is designed to attract uniquelocal, regional and nationalretailers and restaurants, complementing those already present downtown.
The co-tenancy, street-oriented storefronts and engaging public spaces with seasonal programming are expected to attract residents, office workers, convention visitors, regional shoppers and tourists.
In addition to tax revenue, CityCenterDC is expected to provide affordable housing, new public spaces, priority hiring for new jobs created by the development and a commitment to use District-based firms for at least 35 percent of all contracts in the design, construction and operating phases of the project.
To date, more than 40 such firms, representing over $20 million in contracts, have performed on the project. More than $170 million is expected to be added during construction, representing the inclusion of over 90 additional District-based firms. Several District-based companies have been given the opportunity to invest and participate in the project's ownership.
CityCenterDC's master plan design was led by London-based Foster + Partners, the architecture, design and planning studio, which also designed the office and residential condominium buildings.
Additional members of the design team include DC-based Shalom Baranes Associates, serving as associate master plan architect, project Architect of Record and lead designer of the residential rental buildings. Gustafson Guthrie Nichol of Seattle is the lead landscape architect, working with Washington, DC-based Lee and Associates.
Principles and strategies for sustainable design systems and technologies have been embraced by the development team.
The entire development has been accepted into the U.S. Green Building Council's pilot program for LEED Neighborhood Development (LEED-ND) and is expected to receive Gold certification. The office buildings have achieved LEED pre-certification at the Gold level. The residential buildings are targeting a LEED Silver rating.
CB Richard Ellis and Tanween WLL are acting as real estate advisors to TFI. Tanween is an integrated real estate management service provider.
Barwa Bank is the newest Shari'ah bank in the State of Qatar, established in Doha and licensed & regulated by the Qatar Central Bank. With an authorised starting capital of QR 2.5 billion, Barwa Bank provides a full range of Shari'ah compliant banking services including retail, corporate and commercial banking, private banking, real estate finance, structured finance, investments and asset management.
Qatari Diar Real Estate Investment Company, wholly owned by the Qatar Investment Authority, was established in December 2004 to support Qatar's growing economy and co-ordinate the country's real estate development and investment priorities. Qatari Diar is currently involved in more than 35 projects in more than 20 countries around the world.(QNA)